As a San Francisco Bay property management company, you know the importance of taking care of properties. You also know how important property owners are to your business.
They want to know if you're caring for their properties and how the money those properties bring in is used.
It's for this reason that property management companies in San Francisco Bay provide owners' statements to their owners.
Wondering why an owner's statement is important and what should be included in it? Read on to learn more.
What Is an Owner Statement?
A San Francisco Bay Property Management Company will provide an owner with a statement that gives all the financial details of a specific property.
It will show if there's a balance on the account, what money has come in for a property and what expenses were incurred for the property. This is an essential side of property management accounting for both the property manager and the property owner.
Typically, these statements get provided on a monthly basis to owners.
What Should Be Included in an Owner's Statement?
An owner's statement is an important accounting document, often set up in spreadsheet format.
It should start with relevant identifier information like:
- Owner's name and contact information
- Account number
- Property address
The statement should include the relevant dates for the information listed on the statement.
The owner's statement should include all forms of revenue earned for the property during the time period. This will likely be in the form of rent payments.
The statement should list all expenses incurred for the property, including:
- Mortgage payment, if paid by the property manager
- Maintenance fees
- Improvements or upkeep expenses
- Property manager's fee
Some owners will want any positive balance paid out to them. Others will want to maintain a balance in case of unexpected expenses for the property. Then, of course, the balance on the account at the end of the month.
Part of the agreement between the owner and property manager will spell out the financial arrangements for the property.
Most property owners will want to use any potential expenses for tax purposes. The IRS allows certain expenses from rental property to get used as deductions.
The detailed owner's statement will provide the necessary documentation for an owner when they file their taxes. The information listed, especially property expenses, provides the IRS with the necessary documentation when tax time comes around.
Why Is It Important to Provide an Owner's Statement?
As San Francisco Bay Property Managers, you want to be forthright and transparent with all aspects of the finances connected to a property.
Of course, the owner wants their property cared for, and renters managed. They also want a clear picture of all the financial aspects of the property.
The owner's statement creates financial transparency for them.
Use Property Management Companies in San Francisco Bay for Your Property Management Needs
Effective property management companies in San Francisco Bay already know the importance of providing detailed information to their owners about the financial aspects of the property they manage. It creates an important level of trust between the owner and manager.
If you're a property owner looking for assistance with your properties, we can help. Check out our transparent pricing with no hidden fees, so we can start managing your properties today.